SDV Insights

COVID-19 business interruption coverage litigation may have stolen the show in 2020, but those cases should not eclipse other important insurance coverage cases decided throughout this past year.

Jeremiah Welch and Cheryl Kozdrey's recent article, "Protecting Yourself from Downstream Risks," was recently featured in the May/June 2020 edition of FMJ Magazine, the official magazine for International Facility Management Association (IFMA). This article explores effective risk management processes, including contractual risk transfer and insurance protections from downstream parties, and simple tools Facilities Managers can utilize to mitigate risk.

In Maritz Holdings, Inc. v. Certain Underwriters at Lloyd's London, the policyholder, Maritz, sought insurance coverage for cyber-security breaches that resulted in the theft of electronically stored gift card information. Lloyd's of London provided Maritz with breach-response insurance policies from 2015 through 2017, and Maritz sought coverage from Lloyd's for fees and costs incurred in responding to the security breaches.

There has been a recent surge in lawsuits filed by employees and customers of restaurants, hotels, and other major retailers, alleging violations of the Illinois Biometric Information Privacy Act ("BIPA"). BIPA generally prohibits the collection, use, and disclosure of biometric data without an individual's prior written consent.

The State of Connecticut recently joined a growing list of state governments attempting to hold ExxonMobil ("Exxon") accountable for causing climate change, bringing the total number of such states to 21. Connecticut alleges that the oil & gas giant lied to the public for decades about climate science and its own contributions of harmful toxins to the environment.

Lennar Hingham Holdings, LLC ("Lennar") built a twenty-eight-building, 150-unit condominium project containing twenty-four discrete phases over a seven-year span. The condominium association subsequently brought an action against Lennar and others alleging design and construction defects to four main components of the common elements: "decks and columns," roofing/flashing," "exterior walls/flashing/building envelope," and "irrigation system."

On November 4, 2020, the U.S. District Court for the Western District of Texas, San Antonio Division ruled that 124 separate cases of food poisoning at the Pasha Mediterranean Grill restaurant over a four-day period arose out of a single occurrence.

The Power & Energy sector faces a multitude of risks that impact output and profitability, requiring sound risk management and robust insurance programs. As of recent, like most industries, there have been significant challenges facing the industry in light of COVID-19.

Saxe Doernberger & Vita's ("SDV") Natural Disaster Recovery Group presents the Hurricane Season Policyholder's Handbook.

Amid the current movement for racial justice, a new trend has emerged in the world of Directors and Officers insurance. A recent wave of lawsuits that are expected to trigger D&O policies has been brought against major corporations in the U.S., with a message reflective of the movement: that racial diversity belongs in the boardroom.